PRR Comments

PRR Number / 742 / PRR Title / Balancing Energy Price Adjustment Due to OOMC, OOME and RRS Deployments During Alert and Emergency Notice Conditions
Date / 12/6/07
Submitter’s Information
Name / Robert Staples
E-mail Address /
Company / ERCOT, Inc.
Phone Number / 512-248-4234
Market Segment / N/A
Comments
Overall Market Benefit
Overall Market Impact
Consumer Impact

ERCOT offers these comments to PRR742.

Responsive Reserve Service (RRS) deployments do not impact the Market Clearing Price for Energy (MCPE). Therefore, theyhave been removed from the language below. ERCOT would also like to clarify that the MCPE should be adjusted only for Out of Merit Capacity (OOMC) or Out of Merit Energy (OOME)procurements that occur due to capacity insufficiency. This PRR would necessarily be an ex-post pricing change to MCPE calculationsand will not provide real-time price transparency for QSEs representing Load and Generation Resources to respond to during the Alert and/or Emergency Notice timeframe. There is not sufficient time or resources to make changes to the existing system to calculate prices in real-time before the nodal systems become operational.

Implementing this PRR would be a manual process estimated to take 16 hours to complete after each Alert and/or Emergency Notice. ERCOT staff does not currently have sufficient human resources to perform the task requested by this PRR due to lack of resources and resources working on the Nodal project. This PRR cannot be implemented until adequate staff has been put in place to perform the task requested by this PRR.

Revised Proposed Protocol Language

6.8.1.12Payments for Balancing Energy Provided from Ancillary Services During the Operating Period

All Balancing Energy deployed by a Dispatch Instruction and delivered by a Ggenerationg Resource tfrom hrough Balancing Energy Sservice, Responsive Reserve Service, Regulation Reserve Service, or Non-Spinning Reserve Service shall be settled as Balancing Energy at the MCPE of the Congestion Zone of the Resource providing the energy according to Section 6.8.1.13, Resource Imbalance, except when Non-Spinning Reserve Service is deployed in accordance with Section 6.7.4, Deployment of Non-Spinning Reserve Service and there are no binding CSC constraints for that interval. In that case, the MCPE shall be the MCPE that would have occurred if the deployments of Non-Spinning Reserve Service Dispatch Instructions had did not occurred. Likewise, during intervals in which ERCOT has issued an Alert (as defined by Section 5.6.5, Alert) or an Emergency Notice (as defined in Section 5.6.6, Emergency Notice) has been issued by ERCOT, and ERCOT issues OOMC, or OOME or Responsive Reserve Service deployments Dispatch Instructions (excluding any OOMC deployed procured Day-Ahead) occur due to for capacity insufficiency reasons and there are no binding CSC constraints exist for that interval, the MCPE for those intervals shall be the MCPE that would have occurred if the deployments of OOMC, or OOME or Responsive Reserve Service Dispatch Instructions had did not occurred. All Balancing Energy procured deployed by a Dispatch Instruction and delivered by a Load acting as Balancing Energy Sservice, Responsive Reserve Service, Regulation Reserve Service, or Non-Spinning Reserve Service shall be settled as Balancing Energy at the MCPE of the Congestion Zone in which of the Resource providing the energy is located according to Section 6.9.5.2, Settlement for Balancing Energy for Load Imbalance, except when ERCOT sends Dispatch Instructions for OOMC or OOME or Responsive Reserve Service or Non-Spinning Reserve Service is deployed in accordance with Section 5.6.5 or 5.6.6 or Section 6.7.4, Deployment of Non-Spinning Reserve Service and there are no binding CSC constraints exist for that interval. In that those cases, the MCPE shall be the MCPE that would have occurred if the deployments of OOMC or OOME or Responsive Reserve Service or Non-Spinning Reserve Service Dispatch Instructions had did not occurred. Settlement for any energy provided without an authorized Dispatch Instruction will take place be settled according to Section 6.8.1.15, Payments for Balancing Energy Provided from Uninstructed Deviation.

ERCOT will settle Deployed Balancing Energy Service Up procured onfrom qualified Balancing Up Loads will be paid through a capacity payment for the first Settlement Interval during which ERCOT procured the Balancing Energy Service Up that it is deployed equal to the MCPC of Non-Spinning Reserve Service for the hour in which the deployment procurement occurs. ERCOT will settle A continuous deployment of Balancing Energy Service Up procured from on qualified Loads for over more than sixty (60) minutes will be paid through a capacity payment for each subsequent Settlement Interval which it is deployed procured equal to the MCPC of Non-Spinning Reserve Service for that hour divided by four (4).

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